EUR/GBP 4H Chart: Ascending Triangle
Comment: EUR/GBP is struggling to overcome resistance at 0.7280 at the moment, but the outlook is still bullish. The currency pair has recently formed an ascending triangle, meaning demand is gradually building up, and this should eventually result in a breach of the upper boundary of the pattern. If this is the case, the next target will be at 0.7360, represented by the monthly R3, followed by the October high at 0.7490. On the other hand, if the price falls below the rising support at 0.7260, we will expect a test of the previous week low at 0.72. In the meantime, the distribution between the long and short positions is heavily skewed in favour of the latter that take up 70% of the SWFX market.
CAD/CHF 1H Chart: Descending Triangle
Comment: Support at 0.7130 should soon no longer be able to underpin the rate. Taking into account that CAD/CHF is trading within a descending triangle and the technical indicators are mostly giving ‘sell’ signals, our bias is negative. Moreover, a significant majority of the SWFX market participants, namely 73%, are bulls, implying that the Loonie is overbought. Beneath 0.7130 the pair is expected to aim for the weekly S1 at 0.7055, though the main challenge for the downward momentum is seen at 0.6970, represented by the August low. Meanwhile, in addition to the trend-line at 0.72 the 200-hour SMA and Dec 17 at 0.7230 are creating a strong ceiling for the near-term rallies.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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